U.S. Treasury yields were little changed on Tuesday morning, stabilizing after a volatile session on Monday.
The yield on the benchmark 10-year Treasury note was little changed at 1.638% at 8:45 a.m. ET. The yield on the 30-year Treasury bond fell about a basis point to 2.076%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
The 10-year rate traded as high as 1.673% earlier during Monday’s session but fell back to hover above 1.63%. U.S. stock markets closed the previous session at record highs, amid strong company earnings reports. However, concerns about a combination of rising inflation and slowing economic growth, also known as “stagflation,” continue to plague investor sentiment.
The moves in yields come as investors prepare for the next move from the Federal Reserve, which is widely expected to begin slowing its asset purchases later this year. The central bankers are scheduled to meet next week to discuss policy changes.
“I think that, simply, we’re going to see a continuation of the long-end creeping up. And the short end is just basically going to trade based off of what the market expects for next year as far as rate hikes go,” said John Luke Tyner, a fixed income analyst and portfolio manager at Aptus Capital Advisors.
On Tuesday, the number of new homes sold in the U.S. in September is due to come out at 10 a.m. ET. Economists polled by Dow Jones are expecting that home sales grew 760,000 in September, up from 740,000 in August.
The October CB consumer confidence index is also set to be released at 10 a.m. ET.
Auctions are scheduled to be held on Tuesday for $40 billion of 48-day bills and $60 billion of two-year notes.
— CNBC’s Maggie Fitzgerald contributed to this market report.
